Cheaper food and petrol take CPI down 1.1 percent

The consumer price index (CPI) of Tokelau showed a decrease of 1.1 percent for the March 2016 quarter. The Tokelau National Statistics Office released this result today.

In this first quarter of the year, prices fell for major food items such as chicken, lamb or mutton, rice, and flour. Petrol fell 5 percent.

Prices for the Alcoholic beverages and cigarettes group rose 0.7 percent. There was no change in the price for cigarettes in the March quarter, but beer prices rose 9.2 percent.

In the year to the March 2016 quarter, the CPI of Tokelau decreased 0.6 percent.

“This is the first time since records began, with the base year June 2012, that the annual CPI has fallen below zero,” National Statistician Kele Lui said.

The largest group contributions of 5–6 percent to this annual drop were from the Food and non-alcoholic beverages group, from the Transport group and the Furnishings, household equipment and routine household maintenance group.

“Especially the cheaper foods and petrol are good news for Tokelauans,” Mr Lui said.

The largest individual upward contribution came from cigarettes (up 11 percent) and also from price increases for canned fish, milk powder, and sausages.

For the first time, the information release shows how the Tokelau CPI has changed since its base quarter (June 2012): the all-groups CPI indicates inflation of 9 percent over the entire period.

The CPI excluding cigarettes shows an increase of 2 percent over the same period.